Several weeks ago I was talking to a law school administrator who was bemoaning the fact that a lot of current law students are a little short on business and money management skills, in part because their academic success in some cases was assisted by their parents acting as personal assistants handling everyday tasks, including financial management. I'm not just talking about parents providing financial support - I'm talking about parents handling the financial transactions to the point that the student doesn't have a clear grasp of how checkbooks or credit cards or budgets or monthly bills work. (I had it much easier - neither my parents nor I had any money so the management part was pretty simple. You can't buy anything). Yet in this economy many of these same students are going straight from law school into hanging out their own shingles, having never seen a household budget, much less a law firm's finances, much less actually managed either.
Enter another Lawyerist article too useful to pass up commenting on. This article on Lawyerist by Randall Ryder is a detailed how-to manual for setting up accounts, managing cash flow and credit, paying taxes and managing income, and forecasting income. These are critical skills that are not taught in law school, and even many experienced lawyers (and firms) struggle to stay on top of their firm finances. This is a must-read for anyone who manages a law firm’s finances or is even thinking about starting one.
I hope some readers find it useful.